by Calculated Risk on 6/01/2010 12:55:00 AM

Click on cartoon for larger image in new window. Cartoon from Eric G. Lewis www.EricGLewis.com (site coming soon)

From Bloomberg: Commodities’ Biggest Drop Since Lehman Bear Signal

The Journal of Commerce commodity index that includes steel, cattle hides, tallow and burlap plunged 57 percent in May, two years after a decline that foreshadowed the worst recession in half a century. The index of 18 industrial materials declined the most since October 2008 as Europe’s debt crisis widened and China took steps to curb growth.

From the WSJ: Steel Prices Under Pressure

From the WSJ: China Bites Into Commodities Reserves

The Dow Jones-UBS Commodity Index last week dropped to its lowest level since July, before recouping some of its losses. The index is down 9.9% this year.

In April, China posted a significant drop in imports for some commodities, leaving many analysts wondering whether China's appetite for commodities has abated.

The euro is down to 1.226 dollars.

The Asian markets are off tonight about 0.5% to 1%.

The futures are off somewhat (Dow off 47).